Sun Pharma swings to Q2 net profit of Rs1,062 cr
07 November 2019
Healthcare major Sun Pharmaceutical Industries has reported consolidated net profit of Rs1,065 crore for the July-September 2019-20 quarter, against a net loss of Rs269.6 crore in the same quarter of the previous fiscal.
The company had reported one-time loss of Rs1,214.4 crore in Q2FY19 with respect to Modafinil antitrust litigation.
Consolidated revenue during the quarter grew by 17.1 per cent year-on-year to Rs8,123.3 crore, with all-round increase in sales.
Sun Pharma’s India sales increased 35 per cent to Rs2,515 crore while overseas sales jumped 49 per cent to $161 million year-on-year.
Emerging market sales during the quarter rose 3 per cent to $201 million, but US sales remained unchanged at $339 million YoY.
Operating income before interest, tax, depreciation and amortisation (EBITDA) jumped 16.9 per cent to Rs1,790 crore in Q2FY20 while margin remained flat at 22 per cent YoY.
Other income during the quarter fell 42.8 per cent year-on-year to Rs200.8 crore, which impacted bottomline of the company.
According to a poll of analysts conducted by CNBC-TV18, revenue was expected at Rs 8,022.67 crore and EBITDA at Rs 1,690.5 crore with margin at 21.1 percent for the quarter.
The stock gained more than 15 percent in last one month. It was quoting at Rs 439.85, up Rs 12.30, or 2.88 percent on the BSE at 1458 hours IST.
Sun Pharma’s R&D investments stood at Rs488 crore, forming 6.1 per cent of sales, compared with Rs452 crore (6.6 per cent of sales) for Q2FY19.
EBITDA was higher by 12 per cent at Rs1,616 crores over Q2 last year, with resulting EBITDA margin of 20.3 per cent.
Net profit margin stood at 13.4 per cent while net profit adjusted for exceptional item stood at Rs1,214 crore for Q2 last year, showing a growth rate of 12.6 per cent.
Sales / Income from operations for the quarter stood at Rs16,208 crore, a growth of 16 per cent over same period last year.
During the quarter, Sun Pharma filed 2 ANDAs and received 7 approvals. The drug maker's pipeline included 54 approved NDAs while five NDAs are awaiting USFDA approval.
“We continue to focus on cost savings and efficiency improvement to align our generic business with the changing industry dynamics. Simultaneously, we continue to progress on building our global specialty business. In the US, we recently launched Cequa while Ilumya continues to gain traction. The recently released long-term follow-up clinical data for Ilumya demonstrates sustained response for patients over four-year period with very good safety profile. We are excited about the long term prospects of Ilumya," Shanghvi said.